Another spot has opened up within the Federal Reserve for President Joe Biden to fill.
According to reports, Randal Quarles has announced his resignation from the position of Fed governor.
“After more than four years”
He had been appointed by former President Donald Trump and faced harsh criticism from progressives — including Sen. Elizabeth Warren (D-MA) — for his fiscal policies.
Quarles filled the role of vice-chair for supervision until his term ended in October. His term as a board member, however, was not slated to conclude until 2032.
In a letter delivered on Monday, he announced his intention to move on from the central bank next month.
“After more than four years as a member of the Board of Governors of the Federal Reserve System, and given the completion last month of my term as Vice Chairman for Supervision of the Board, I intend to resign my position as a Governor of the Federal Reserve during or around the last week of December,” he wrote in a letter to Biden.
The president now has an immediate opportunity to further shape the Federal Reserve, whose current chairman is up for another term if Biden chooses to retain him.
“Well into next year”
In addition to Chairman Jerome Powell, Vice Chair Richard Clarida’s term is set to end in January.
As for the board of governors, it currently has seven members, only one of whom is a Democrat. Lael Brainard served during the Clinton and Obama administrations. Some pundits predict that Biden will promote Brainard to either fill the positions vacated by either Quarles or Powell.
The shakeup within the Federal Reserve comes as it is facing pressure to shift from its pandemic-era bond-buying spree, which many experts contend has played a role in the current wave of inflation impacting American consumers. For its part, the Fed claims that inflation is “transitory” and it is expected to begin “tapering” down the current strategy later this month. There are no public plans, however, to raise interest rates.
“Our baseline expectation is that supply chain bottlenecks and shortages will persist well into next year and elevated inflation as well,” Powell said.
It remains to be seen whether Quarles’ upcoming departure will have a direct impact on the Fed’s decision. Although he was widely lambasted by the left, he earned a glowing reputation in other circles for his efforts to relax regulations enacted after the 2008 financial crisis.